This was on Bloomberg this morning
BIOMAGNETIC TECHNOLOGIES, INC. ANNOUNCES RECEIPT
8/10/98 7:48
of $15,000,000 New Equity Investment
SAN DIEGO, Aug. 10 /PRNewswire/ -- Biomagnetic Technologies, Inc. (BTI)
(Nasdaq: BTIX) today reported that it has received $15,000,000 from the sale
of 30,000,000 shares of newly issued common stock at $0.50 per share to
foreign investors. The Company has 83,367,112 shares of common stock
outstanding after this investment.
The shares in this transaction are unregistered shares of common stock
sold overseas pursuant to Regulation S and may not be offered or sold in the
United States without being registered under the Securities Act of 1933, or
without an applicable exemption from such registration requirements.
In commenting on this transaction, Herman Bergman, Vice President Finance
of the Company, stated, "10,000,000 of the 30,000,000 shares were sold for
$5,000,000 to 'La Caixa,' Caja de Ahorros y Pensiones de Barcelona, one of the
leading financial institutions of the Kingdom of Spain. An additional
10,000,000 shares were sold for $5,000,000 to Dassesta International S.A., a
major shareholder of BTi since March 1995. The remaining 10,000,000 shares
were purchased by three European banks under the same terms and conditions.
The combined investment of $15,000,000 is clearly indicative of confidence in
the future potential of BTi."
Dr. D. Scott Buchanan, President and Chief Executive Officer of the
Company added, "The purchase of 30,000,000 shares of the Company for
$15,000,000 by our new foreign investors, and by Dassesta, is a clear
indication of the great progress made by the Company. Over the last year the
Company completed the shipment and installation of nine of its new Whole Head
Magnes 2500 systems in the United States, Europe and Japan. After repayment
of approximately $2,000,000 of working capital loans from Dassesta, the
Company will be in an enhanced cash position which it will utilize to
significantly accelerate clinical acceptance of Magnetic Source Imaging (MSI)
in addition to its continued pursuit of sales in the current worldwide
research and clinical markets. BTi will work with selected U.S. sites which
have the clinical expertise, and patient volume, to firmly establish the
clinical and economic viability of MSI. BTi will work with these sites to
establish the infrastructure necessary for routine reimbursement including
applying for CPT codes, working with, and educating health care providers, and
creating demand for the technology."
Headquartered in San Diego, BTi is a world leader in development of
Magnetic Source Imaging ("MSI") for research and clinical applications. With
a growing number of MSI exams performed on patients and an increasing number
of third party reimbursements, BTi's Magnes systems are used worldwide to
noninvasively examine the function of the brain, heart and other organs.
This press release contains forward looking statements. Actual results
could differ materially from those described in such forward looking
statements as a result of factors including, but not limited to, shortage of
materials, delayed customer acceptance, unforeseen installation issues,
regulatory approvals, or other factors, detailed from time to time in the
company's filing with the Securities and Exchange Commission. The Company
disclaims any obligation to update the statements included in this release to
reflect future events.
SOURCE Biomagnetic Technologies, Inc.
-0- 08/10/98
/CONTACT: D. Scott Buchanan, or Herman Bergman, both of Biomagnetic
Technologies Inc., 619-453-6300/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 101950/
(BTIX) |
